why so negative treetop?
any insights would be most appreciated.
thanks,
flick
MicroStrategy Reports 80% Revenue Growth for First Quarter
Business Wire - April 21, 1999 17:20
VIENNA, Va.--(BUSINESS WIRE)--April 21, 1999--
Net Income Increased 243% Over Corresponding Quarter Last Year
MicroStrategy(R) Incorporated (NASDAQ: MSTR), a leading worldwide provider of mission-critical decision support systems, today announced revenues of $35.8 million for the first quarter ended March 31, 1999. This represents an 80% increase over the corresponding quarter in the previous year. Net income for the three months ended March 31, 1999 was $1.9 million, or $0.05 per share on a diluted basis, representing a 243% increase over the corresponding quarter last year.
"We are pleased to announce our 13th consecutive quarter of increased revenues," said Michael J. Saylor, president and CEO of MicroStrategy. "In the quarter, MicroStrategy continued on its quest to develop intelligence solutions that empower people within the enterprise and beyond with knowledge to make better decisions. We believe that with our Global 2000 customer base, scalable technology, strong balance sheet, committed corporate culture, and worldwide sales & marketing presence, we are well positioned to take advantage of opportunities in the world of business and commercial intelligence as they continue to evolve."
Quarterly Highlights
The following highlights were announced or occurred during MicroStrategy's first quarter of 1999: -- MicroStrategy acquired 55 new customers across a broad range of industries, increasing its current worldwide customer base to approximately 750. The company entered into substantial contracts with ChoicePoint, Capital One Services Inc., First USA Bank, Thomson Financial Services, JP Morgan & Co., Earthlink, Network Solutions Inc., JD Edwards World Solutions Co., Venator Group Services, Inc., France Telecom Mobile, and Discount Auto Parts. -- The company signed a multi-thousand user, multi-million dollar software licensing deal with Kmart Corporation. Kmart, the nation's second largest discount retailer and the world's third largest general merchandise retailer, is using MicroStrategy's business intelligence software to enable its buyers and planners to better manage item level sales and inventory information. -- MicroStrategy launched a new version of its DSS Broadcaster(tm) product, a platform for developing second-generation e-commerce solutions and enterprise-wide information broadcasting applications. DSS Broadcaster 5.5 has been enhanced to reach even larger audiences with back end optimizations and rigorous throughput testing, and includes a new XML generation engine that leverages the power of XML and XSL to provide customized, functionality-rich HTML output. -- MicroStrategy won several industry awards during the first quarter ending March 31, 1999. Forbes ASAP named MicroStrategy to its "Dynamic 100," a prestigious ranking of the top 100 technology companies in the United States. DSS Broadcaster was selected by Datamation as the 'IT Manager's Choice' Product of the Year in the data warehouses and data marts category. Finally, MicroStrategy's DSS Suite(tm)was added to the Crossroads A-List by Open Systems Advisors, a leading industry analyst firm. -- MicroStrategy completed a $54 million secondary public offering. -- MicroStrategy entered into agreements with 28 system integration, application development and platform partners during the quarter, increasing the number of partners supporting the company's decision support platform to approximately 185. New partners include IEA Business Solutions, USInternetworking, Inc. and NetBase Computing, Inc.
The attached summary of financial highlights compares the 1999 first quarter results to the same period last year.
MicroStrategy will hold a conference call today at 5:00 p.m. (EST). Investors can access the call by dialing 1-800-377-4287 and dialing access code 4122495. A replay of the conference call can be accessed for 48 hours by dialing 1-800-938-3469 and dialing access code 4122495 after 6:30 pm EST on April 21, 1999 until 8:00 pm EST April 23, 1999.
About MicroStrategy Incorporated
MicroStrategy is a leading worldwide provider of enterprise decision support system ("DSS") software and related services. MicroStrategy's product line (DSS Suite(tm)) enables both active and passive delivery of information from large-scale databases, providing Global 2000 enterprise user communities with timely answers to mission-critical questions.
MicroStrategy's decision support platform enables users to query and analyze the most detailed, transaction-level databases, turning data into business intelligence. In addition to supporting internal enterprise users, MicroStrategy's products extend DSS beyond corporate boundaries to customers, partners and supply chain constituencies through a broad range of pull and push technology such as the Internet, e-mail, telephones, pagers and other wireless communications devices. MicroStrategy also offers a comprehensive set of consulting, training and support services for its customers and partners.
MicroStrategy has over 750 customers across such diverse industries as retail, telecommunications, finance, insurance, healthcare, pharmaceuticals and consumer packaged goods. MicroStrategy's customers use DSS Suite to perform mission-critical activities such as: customer segmentation and profitability analysis; supply chain management; one-to-one customer marketing; financial analysis; customer acquisition, retention, and churn analysis; merchandising and inventory analysis; product category management; and customer risk profiling. Representative MicroStrategy customers include American Express Travel Services, CVS Pharmacy, Harris Teeter, IMS America, Kmart, MCI WorldCom, Merck-Medco, Nike, and Ralston Purina. MicroStrategy has also entered into relationships with more than 185 system integration, application development and platform partners, including Acxiom, HNC Software, IBM, NCR, and Oracle.
For more information, please visit MicroStrategy's Web site: strategy.com.
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include continued acceptance of the Company's products in the marketplace, the timing of significant orders, delays in the Company's ability to develop or ship new products, market acceptance of new products, competitive factors, general economic conditions, currency fluctuations, and other risks detailed in the Company's registration statements and periodic reports filed with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
MicroStrategy, DSS Broadcaster, and DSS Suite are either trademarks or registered trademarks of MicroStrategy Incorporated in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.
MICROSTRATEGY INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per
share amounts)
(Unaudited)
Three Months
Ended
March 31,
1999 1998
Revenues
Product licenses $23,124 $14,282
Product support 12,660 5,613
Total revenues 35,784 19,895
Cost of Revenues
Product licenses 520 538
Product support 6,609 3,163
Total cost of revenues 7,129 3,701
Gross profit 28,655 16,194
Operating Expenses
Sales and marketing 16,774 10,828
Research and development 5,060 2,092
General and administrative 4,280 2,563
Total operating expenses 26,114 15,483
Income (loss) from operations 2,541 711
Interest income 504 47
Interest expense (92) (237)
Other income (expense), net 46 21
Total other income (expense) 458 (169)
Income before taxes 2,999 542
Income tax 1,140 -
======= =======
Net income $ 1,859 $542
======= =======
Earnings per share (basic) $0.05 $0.02
Weighted average
outstanding shares(basic) 36,389,742 30,895,514
Earnings per share (diluted) $0.05 $0.02
Weighted average outstanding
shares (diluted) 40,969,116 35,312,065
Pro forma information (1):
Pro forma net income $336
Pro forma earnings per share
(basic) $0.01
Pro forma earnings per share
(diluted) $0.01
(1) Presented on a Pro forma basis, which reflects Federal and
state income taxes based on estimated applicable tax rates as if the
company had been a subchapter C corporation for the three months ended
March 31, 1998.
MICROSTRATEGY INCORPORATED
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per
share amounts)
(unaudited)
March 31, December 31,
1999 1998
Assets
Current assets
Cash and cash
equivalents $ 45,123 $ 27,491
Investments 16,487 -
Accounts receivable,
net 37,221 33,054
Prepaid expenses and
other current assets 2,940 2,198
Deferred tax assets,
net 716 716
Total current assets 102,487 63,459
Property and equipment,
net 17,151 13,773
Other long-term receivables 1,800 2,700
Deposits and other assets 2,841 2,757
Total Assets 124,279 82,689
Liabilities and Stockholders'
Equity
Current liabilities
Accounts payable and other 12,751 11,904
Accrued compensation and
employee benefits 5,401 7,356
Deferred revenue 11,114 10,732
Dividend notes payable 2,500 5,000
Total current liabilities 31,766 34,992
Deferred revenue 1,171 746
Deferred tax liabilities,
net 671 671
Total Liabilities 33,608 36,409
Stockholders' equity:
Preferred stock; $.001 par
value; 5,000 shares authorized;
no shares issued or
outstanding - -
Class A Common Stock; $.001
par value; 100,000 shares authorized;
7,875 and 5,052 shares issued
and outstanding,
respectively 8 5
Class B Common Stock; $.001
par value; 100,000 shares authorized;
30,024 and 30,633 shares issued and
outstanding, respectively 30 31
Additional paid-in capital 84,998 42,219
Deferred compensation (2,016) (2,098)
Cumulative translation adjustment 563 894
Retained earnings 7,088 5,229
Total Liabilities & Owners
Equity 124,279 82,689
======= =======
CONTACT: MicroStrategy Inc., Vienna
Mark Lynch, Chief Financial Officer, 703/848-8600
mlynch@strategy.com
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